How does car insurance work outside the UK?
How does car insurance work outside the UK?
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Discussion

JQ

Original Poster:

6,874 posts

210 months

Thursday 29th August 2013
quotequote all
Do you live outside the UK, have lived in other countries, or are originally from elsewhere? If so, how does car insurance work in the country you know about? It appears in some countries that, unlike the UK, it is the car that is insured and not the driver, and as such so long as a car is insured anyone can drive it?

So which country do you know about and how does it work? I'm just trying to see if the UK system is the norm or not.

I'll start - in Iceland the car is insured meaning youngsters can drive fast powerful cars for a reasonable cost whilst older drivers get less of a discount than the UK.

El Capitano

1,157 posts

224 months

Thursday 29th August 2013
quotequote all
Here in Dubai it's the car that is insured too. Anyone with a licence can drive it and be fully insurered.

I pay about £400 at the age of 26 for a Range Rover Sport v8 supercharged.
It's a good system!

anonymous-user

85 months

Thursday 29th August 2013
quotequote all
in germany i think the car is insured

miniyouvidu

9 posts

182 months

Thursday 29th August 2013
quotequote all
In Spain, in most insurance companies, anyone over certain age (I think is +23 or +25) can drive any car, but if younger than that you have to be included in the insurance as a named driver, because otherwise the insurance won't cover you. That is just in case of an accident, police wise you do not be in the insurance, the car needs to have an insurance and anyone can legally drive it.


RedWhiteMonkey

9,237 posts

213 months

Thursday 29th August 2013
quotequote all
RealSquirrels said:
in germany i think the car is insured
Yes, its a great system as it means that we can swap cars within the family easily. If we want to borrow the in-laws' camper we just give them our car to cover the time, no paperwork or additional fees to sort out.

Snappy89

418 posts

159 months

Thursday 29th August 2013
quotequote all
I've noticed the car is insured system quite a lot outside of the UK.

I guess such a system wouldn't be implemented here because that would mean they couldn't charge certain age groups out of the backside. I'm 24 myself so it's not a personal issue I'm facing, just a statement I felt was appropriate.

The Moose

23,706 posts

240 months

Thursday 29th August 2013
quotequote all
El Capitano said:
Here in Dubai it's the car that is insured too. Anyone with a licence can drive it and be fully insurered.

I pay about £400 at the age of 26 for a Range Rover Sport v8 supercharged.
It's a good system!
(I don't know but) How do the prices compare between Dubai and the UK?

marshalla

15,902 posts

232 months

Thursday 29th August 2013
quotequote all
And what are you covered for/insured against ? Is there any state-backed/provided minimum cover ? (if so, what is it ?)

RDMcG

20,908 posts

238 months

Thursday 29th August 2013
quotequote all
In Canada the car is insured for licensed drivers.

Hackney

7,440 posts

239 months

Thursday 29th August 2013
quotequote all
Any other system in the UK would mean a whole load of scams could not be perpetrated, so no incentive to change

karona

1,928 posts

217 months

Thursday 29th August 2013
quotequote all
In Bulgaria it's the car which is insured, any qualified driver can use it with the registered owner's written permission.
There's two levels of cover, compulsory third party, which is roughly the equivalent of 60 quid a year, and optional full cover. The premium for full cover is a percentage of the agreed value of the car at the start of the contract, usually 5 to 6 %, and there's no discount for a claim free history, nor do you get hammered for making a claim.
There is a 'Gold license' system, after 5 years without falling foul of the police you can claim a gold license, which gives you a discount on insurance premiums.

The Moose

23,706 posts

240 months

Thursday 29th August 2013
quotequote all
karona said:
In Bulgaria it's the car which is insured, any qualified driver can use it with the registered owner's written permission.
There's two levels of cover, compulsory third party, which is roughly the equivalent of 60 quid a year, and optional full cover. The premium for full cover is a percentage of the agreed value of the car at the start of the contract, usually 5 to 6 %, and there's no discount for a claim free history, nor do you get hammered for making a claim.
There is a 'Gold license' system, after 5 years without falling foul of the police you can claim a gold license, which gives you a discount on insurance premiums.
So on a £50,000 car you'd pay circa £2,560 (5% of £50,000 + £60 third party)?

El Capitano

1,157 posts

224 months

Thursday 29th August 2013
quotequote all
The Moose said:
(I don't know but) How do the prices compare between Dubai and the UK?
Same car in UK, with old address, old details including 7 years no claims bonus = £1000 plus.,cheapest was 1000 with a £350 excess, most were 1200 ish

davepoth

29,395 posts

230 months

Thursday 29th August 2013
quotequote all
I was talking about this at work with an Italian guy. It's the car that's insured there too. I think I'm seeing a pattern.

The Moose

23,706 posts

240 months

Thursday 29th August 2013
quotequote all
El Capitano said:
The Moose said:
(I don't know but) How do the prices compare between Dubai and the UK?
Same car in UK, with old address, old details including 7 years no claims bonus = £1000 plus.,cheapest was 1000 with a £350 excess, most were 1200 ish
Lol - I meant purchase price!!

lankybob

2,186 posts

221 months

Thursday 29th August 2013
quotequote all
So why do we insure the driver? I was thinking about this the other day and to me it makes no sense to do it our way.

marshalla

15,902 posts

232 months

Thursday 29th August 2013
quotequote all
lankybob said:
So why do we insure the driver? I was thinking about this the other day and to me it makes no sense to do it our way.
We don't. We insure car + driver against particular risks.

El Capitano

1,157 posts

224 months

Thursday 29th August 2013
quotequote all
The Moose said:
El Capitano said:
The Moose said:
(I don't know but) How do the prices compare between Dubai and the UK?
Same car in UK, with old address, old details including 7 years no claims bonus = £1000 plus.,cheapest was 1000 with a £350 excess, most were 1200 ish
Lol - I meant purchase price!!
Whoops!

It depends on the car, but generally something European, pre-owned and less than 5 years old, you are looking at very similar prices to the UK.

My RRS was pretty much on par with what I would pay back at home for the same spec.

JQ

Original Poster:

6,874 posts

210 months

Thursday 29th August 2013
quotequote all
So far we don't have anywhere that insures the same way as the UK, and it's confirmed that :

Iceland
Dubai
Germany
Spain
Canada
Bulgaria
Italy

all insure the car.

Anyone know for certain what happens in the likes of USA, China or Australia?


Devil2575

13,400 posts

219 months

Thursday 29th August 2013
quotequote all
Hackney said:
Any other system in the UK would mean a whole load of scams could not be perpetrated, so no incentive to change
What scams?

Like charging young blokes high premiums becasue they are a high risk and tend to crash a lot?